SYG(SZ:300740) Minsheng Securities·2024-07-31 23:30Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company focuses on enhancing brand assets, with the Ifidan brand continuing to show high growth and an increase in gross margin [1][2]. - The company is implementing a "Four Double Strategy" and is making steady progress in brand adjustments and upgrades, which is expected to drive revenue and profit growth [2]. - The company’s net profit for 2024 is projected to be 301 million yuan, with a year-on-year growth rate of 2.4% [3]. Financial Performance Summary - In the first half of 2024, the company achieved revenue of 2.293 billion yuan, a year-on-year increase of 0.14%, while the net profit attributable to shareholders was 106 million yuan, a decrease of 25.74% [1]. - The gross margin for the first half of 2024 increased by 4.57 percentage points to 61.48% [1]. - The company’s sales expense ratio increased to 46.84% in the first half of 2024, primarily due to increased promotional expenses [1]. - The projected revenue for 2024 is 4.493 billion yuan, with a growth rate of -4.9% [3]. Brand Development and Market Strategy - The Ifidan brand has seen significant growth, with offline channel growth exceeding 100% and Douyin GMV increasing by 76.52% in the first half of 2024 [2]. - The company is actively upgrading its other brands, such as Yuni Fang, and has launched new products to enhance its market presence [2]. - The agency business strategy "1+5+N" is progressing steadily, contributing to the company's growth [2]. Profitability Forecast - The company’s net profit is expected to grow to 356 million yuan in 2025 and 413 million yuan in 2026, with corresponding growth rates of 18.0% and 16.0% [3]. - The projected PE ratios for 2024, 2025, and 2026 are 16X, 14X, and 12X respectively [2][3].